GMAC mortgage foreclosures

When New Jersey tightened its foreclosure rules in response to the false document crisis, it ordered the six largest servicers to explain why they should be allowed to continue foreclosing on homes. Their response: 'Trust us, everything's fine now.' If you think there's irony in that assertion, read on ...

An Obama Administration housing official said mortgage lenders such as Bank of America Corp. and JPMorgan Chase & Co. could legally resume foreclosures on homes, while a New York judge is forcing lawyers handling foreclosures to verify paperwork accuracy, the Associated Press reported.

Federal agencies are investigating foreclosure processes after some major banks have said they would either review or suspend foreclosures because of possible errors. And Chicago-area law enforcers are halting foreclosure-related evictions until banks provide them with proper affidavits.

Bank of America (BAC) is preparing to resume foreclosures in 23 states, just 10 days after halting the foreclosure process on properties in all 50 states. The foreclosure halt came amid concerns that company executives may have signed documents without properly verifying them.

The state of Ohio filed a lawsuit against GMAC Mortgage, alleging that the lender used fraudulent affidavits and documents to mislead courts in proceedings related to home foreclosures.
Attorney General Richard Cordray said GMAC Mortgage%u2019s parent Ally Financial had taken actions that raise questions about the legitimacy of foreclosures in 22 states including Ohio, USA Today reported.

Wells Fargo still won't admit it, but its employees' testimony makes it clear that, like GMAC, JPMorgan Chase, Bank of America and OneWest Bank, they have a problem with their foreclosure documents. But the solution isn't just a better documentation process: It's time to bring back cram downs.

In Friday's legal news, the timing of the SEC's suit against Goldman Sachs may have had more to do publicity than with advancing the Democrat's agenda; the delinquent Harrisburg Authority tries to make good on its debts; and the justice department wants to determine policy regarding gays in the military.

In 2007, a man was convicted of murder despite strong evidence that he wasn't the killer after three apparently very compelling witnesses matched him to the scent of the victim's clothes. Those witnesses? A trio of bloodhounds named Quincey, James Bond and Clue. I wish I was joking.